Crypto is suddenly preparing for a 'very important' change in China after the prices of Bitcoin, Ethereum and XRP fluctuated strongly.
Bitcoin—along with other major cryptocurrencies Ethereum and XRP— has been volatile as "extreme fear" threatens to cause further market collapse .
Bitcoin prices have lost nearly 20% over the past month, plunging from recent highs of more than $70,000 per bitcoin as Federal Reserve chair Jerome Powell issued a "severe" warning.
Now, after a tech billionaire sparked speculation that he could follow Elon Musk's MicroStrategy and Tesla into bitcoin, crypto entrepreneur Justin Sun says China is about to move into bitcoin and cryptocurrencies, called his recent legal victory in China "very important."
Sun, founder of blockchain and cryptocurrency tron, told The Block: "I think winning the lawsuit in mainland China is important because there are a lot of rumors circulating about misunderstandings in the way interpretation of mainland China's legal policy".
Sun, who is also the owner of cryptocurrency exchange Poloniex and an influential advisor to exchange Cooperative, won in Chinese court against Chongqing Business Media Group last month. The court found the allegations—primarily made in a March 2022 article in The Verge—that Sun was under investigation by the FBI and suspected of insider trading to be “completely unfounded keep".
Last week, Sun took out a paid advertisement in cryptocurrency industry publication Blockworks to spread news of his legal victory.
"This is a big victory not only for me but also for the industry as cryptocurrency has long been considered a gray area in China," Sun said, adding that the Chinese court has legitimized some of the properties of cryptocurrencies.
China's 2021 bitcoin ban, which made trading and mining of cryptocurrencies including ethereum and XRP illegal, caused a sudden collapse in bitcoin prices at the time.
Last month, bitcoin and cryptocurrency investor Brock Pierce predicted that it was only a matter of time before China reopened its digital doors to cryptocurrencies .
"Will China open up [to crypto]? ... I think it's inevitable," said Pierce, a former child actor who co-founded the firm that issues the U.S. dollar-pegged stablecoin Tether in Hong Kong a decade ago, told the South China Morning Post . "The question is not if, but when."
In May, attendees at a bitcoin conference in Hong Kong raised speculation that Hong Kong's much-hyped bitcoin spot exchange-traded funds (ETFs) could finally open for mainland Chinese investors .
